NEW DELHI: Vodafone Idea's Board is scheduled to meet on June 22, to consider and approve a proposal for raising funds to the tune of Rs 500 crore.
The fundraising will be through the issuance of equity shares or convertible warrants on a preferential basis to one or more entities belonging to Vodafone Group (one of the promoters of the company).
"A meeting of the Board of Directors of the company is scheduled to be held on Wednesday, 22nd June 2022 to consider a proposal for raising of funds aggregating up to Rs 500 crore, by way of issuance of equity shares and/or convertible warrants on a preferential basis to one or more entities belonging to Vodafone Group (one of the promoters of the company)," VIL said in a filing to BSE on Sunday evening.
The move comes as the Indian telecom market is poised for a 5G spectrum auction and subsequent roll-out of new-age offerings.
Following the September reforms announced by the Centre, debt-ridden Vodafone Idea (VIL) had opted for converting about Rs 16,000 crore interest dues liability payable to the government, into equity. This will result in the government holding about 33 per cent stake in the company.
Sources at the Department of Telecommunications (DoT) said that VIL's equity conversion proposal is in final stages, and required approvals on the same are expected as early as 7-10 days.